In late August, the Ethereum network’s gas costs skyrocketed, reaching on September 7th. The average fee for an Ether transaction on September 7th was around $ 20 per transaction. Days later, Ether transaction fees have decreased to some extent as the median and average Ether fees have since been cut in half.
Ethereum fees are falling, transfer costs are cheaper
One of the biggest complaints people have with digital currencies is how much the transaction fee to ship these assets can cost. Critics don’t care about the fact that Layer 1 Bitcoin (BTC) and Ethereum (ETH) transactions can also be quite costly and unpredictable. The common answer for Bitcoiners is the Layer 2 protocol, the Lightning Network, but there are also Layer 2 schemes for Ethereum (ETH) transactions.
First of all, a Layer 1 transaction processed onchain costs an Ethereum user between $ 3.39 and $ 18.74 per transaction. The $ 3.39 offer is for a very low priority transaction as per the Etherscan gas tracker stats and the $ 18.74 is from the metrics recorded for an average Ethereum transaction, according to bitinfocharts.com. The same website also tracks the average Ether fee, which at the time of writing is $ 9.29. Data from the l2fees.info website shows that a Layer 2 Ethereum fee is currently $ 4.46 per transaction.
These fees don’t take into account smart contract interactions, which can be more costly. For example, the Etherscan gas tracker statistics show that a typical ERC20 transfer is $ 10.48 and at the time of writing, using Uniswap can cost a person $ 32.25. This means that moving a token balance, interacting with a decentralized exchange (Dex) or using an NFT marketplace can be more costly than simply moving Ethereum from A to B. For this reason, the competitors on the Ethereum network are nibbling on the project’s heels.
Layer 2 fees: Between 46-97% cheaper when sending Ether
Ethereum proponents have some lines of defense when it comes to high fees, and a large majority of ETH supporters believe the Ethereum 2.0 upgrade will settle the matter. In addition, there are Layer 2 projects and concepts such as “Optimistic Rollups” and two specific projects, Optimism and Arbitrum, that use this technology. In addition, ether gas killers like hermez.io, aztec.network, starkware.co, loopring.org, zksync.io, and Fuel.sh aim to solve the transaction bottleneck and high fees.
Some of these projects are in use today, as Bitcoin.com News reported on Arbitrum’s recent $ 1.5 billion total lockdown (TVL). The website l2fees.info shows the costs associated with these ether gas killers, and although they are lower, some are still much higher than those of the Ethereum network competitors. At the time of writing, a loop ring-based transaction will cost about $ 0.11 on Sept. 12, according to statistics from l2fees.info. Zksync costs $ 0.18 to send a transaction and Polygon Hermez costs $ 0.40 per transaction.
At the time of writing, an Arbitrum One transaction is $ 1.61 and an Optimism transaction is $ 2.38. The fees for the blockchains of Ethereum network competitors are lower than sending an ordinary Ether transaction. Statistics from Messari.io find that the average transaction fee on September 6 for the crypto asset Cardano (ADA) was $ 0.59 per transaction.
The Blockchain Solana (SOL) states on the project’s website that the average SOL shipping is $ 0.00025 per transaction. Meanwhile, l2fees.info’s sister site, cryptofees.info, reveals that $ 22 million in ether fees was collected on Sept. 12 days.
Bitcoin (BTC) recorded $ 448,000 in fees last week and BTC miners raised $ 680,000 in fees last week. While Optimism recorded $ 285,000 on the last day, Avalanche (AVAX) recorded around $ 216,607 in average 24-hour charges. Arbitrum One’s fees for the past 24 hours have been around $ 90,000.
What do you think of the easing in Ethereum fees and the fees associated with Layer 2 solutions? Let us know what you think on this matter in the comments below.
Photo credits: Shutterstock, Pixabay, Wiki Commons, etherscan, l2fees.info, cryptofees.info,
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